The government has pledged closer partnership with the agricultural sector but ruled out further changes to inheritance tax reforms, as ministers sought to ease tensions with farmers following months of protest.
Speaking at The Oxford Farming Conference on 8 January, Emma Reynolds, the Defra secretary of state, said the government would “deepen partnership” with farming and provide long-term certainty on support schemes, after acknowledging widespread frustration over frequent policy changes.
She confirmed that reforms to agricultural inheritance tax would not be revisited, following a significant increase in thresholds announced before Christmas. “That’s it,” she said in response to questions about whether there would be further changes. The changes raise the threshold from £1m to £2.5m per individual, rising to £5m for couples, with additional allowances taking the effective level to around £5.65m.
The minister said the revised policy means around 85% of estates affected by business and agricultural property relief will pay no additional inheritance tax. The aim, she said, was always to ensure that only the largest estates paid inheritance tax, at a reduced rate of 20%, rather than the standard 40%.
“We’ve listened carefully and made significant changes,” she said, adding that refining the policy was “a strength, not a weakness”.
On the animal welfare strategy, the minister said the government was committed to manifesto pledges to phase out cages for laying hens, with consultations to begin soon, although she did not answer when asked by Poultry Business about the timescales. Nor did she answer a question about whether she personally supported ending the use of enriched cages for laying hens and pullets.
“We want to work with the industry to phase out cages. In terms of percentage, it’s not that much actually as I understand it. Most of them are free-range these days, the vast majority,” she told Poultry Business.
The conference took place amid noisy protests outside the venue, reflecting ongoing anger among some farmers. The minister said the inheritance tax issue was now settled and that the focus must shift to rebuilding trust.
She pointed to Labour’s electoral gains in rural and semi-rural constituencies and said the government was “serious about rural communities”, citing opportunities for growth in farming, tourism and hospitality.
“We’ve already shown we’re willing to listen,” she said. “Now it’s about delivering in partnership.”